Dangote Cement Plc, Africa’s largest cement producer, has announced the successful issuance of N50 billion Series 1 Fixed Rate Senior Unsecured Bonds under the company’s new NGN300 billion Multi-Instrument Issuance Programme.
The bonds were issued on May 26 2021 at coupon rates of 11.25%, 12.50% and 13.50% for the 3, 5 and 7-year tranches respectively.
This disclosure is contained in a public statement issued by Dangote Cement Plc on June 16, 2021, and signed by its Deputy Company Secretary, Edward Imoedemhe, and its seen on its website.
The statement said that the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors, despite the market headwinds.
It also stated that the proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.
Aside from this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme, which will enable it to consider different types of fixed income instruments to cater for a different type of investors.
The ability to issue Green Bonds and Sukuk will enable the company to leverage the depth and breadth of the Nigerian market.
What the Chief Executive Officer is saying about the bond issuance
The Chief Executive Officer of Dangote Cement Plc, Michel Puchercos, while commenting on the bond issuance said, “This bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness. We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance.”
The parties to the transaction include Absa Capital Markets Nigeria, who acted as Lead Issuing House for the Series 1 Bonds, and Stanbic IBTC Capital, Standard Chartered Capital & Advisory Nigeria Limited, United Capital Plc, FBN Quest Merchant Bank, FCMB Capital Markets and Coronation Merchant Bank, who acted as Joint Issuing Houses.
Other financial institutions that acted as Joint Issuing Houses are Ecobank Development Corporation Nigeria, Futureview Financial Services, Meristem Capital Limited, Rand Merchant Bank, Quantum Zenith Capital and Vetiva Capital Management.
The Bonds will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
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